- Justify Capital (JST.P) and Everyday People Financial (EP) have announced the proposed terms of a brokered private placement
- The $12M placement is in connection with the proposed business combination of Justify and EP
- Cantor Fitzgerald Canada Corporation and ATB Capital Markets Inc. will act as lead agents and joint bookrunners for the offering
- Proceeds of the private placement, less the agents’ commission, will be deposited in escrow pending satisfaction or waiver of the escrow release conditions
- EP intends to use the net proceeds from the financing to acquire EP homes inventory under the Bridge to Own™ program
- EP is a Canadian-based FinTech credit provider that offers credit and payment cards, payment processing, homeownership facilitation and collections services in Canada and the UK
- Justify Capital Corp. (JST.P) is currently trading at C$0.45 per share
Justify Capital (JST.P) and Everyday People Financial (EP) have announced the terms of a brokered private placement of approximately $12,000,000 in subscription receipts.
The placement is to be completed in connection with the proposed business combination of Justify and EP.
EP has entered into a brokered private placement of approximately of 12,000,000 subscription receipts with Cantor Fitzgerald Canada Corporation and ATB Capital Markets Inc. as lead agents and joint bookrunners on behalf of a syndicate of agents.
The placement is expected to close on or about November 12, 2021.
Each receipt will be automatically converted into one unit comprised of one class “A” share in the capital of EP and one-half of one EP share purchase warrant. Each warrant will entitle the holder to acquire one EP share at a price of $1.40 at any time up to 24 months from the date of closing of the qualifying transaction.
EP has agreed to pay the agents a cash commission equal to 7.0 per cent of the gross proceeds. 50 per cent will be paid on the closing of the private placement and the remaining 50 per cent will be deposited in escrow. The Agents will also be granted non-transferable broker warrants of EP. Each EP broker warrant will be exercisable to acquire one EP Share at a price of $1.00per EP share.
Proceeds of the private placement, less 50 per cent of the cash commission will be deposited in escrow pending satisfaction or waiver of the escrow release conditions.
If the escrow release conditions are not satisfied on or before the deadline, the subscription receipts will be cancelled.
EP intends to use the net proceeds from the financing to acquire EP homes inventory under the Bridge to Own™ program, for working capital for the financial services segment and for general corporate purposes.
Justify’s principal business is the identification and evaluation of assets or businesses with a view to completing a qualifying transaction.
EP is a Canadian-based FinTech credit provider that offers credit and payment cards, payment processing, homeownership facilitation and collections services to serve an ecosystem of everyday people living in Canada and the United Kingdom.
Justify Capital Corp. (JST.P) is currently trading at C$0.45 per share.
